Govt eases FDI rules for inventory-based e-commerce model to boost exports

The government on Thursday relaxed foreign direct investment (FDI) norms for e-commerce by allowing inventory-based e-commerce entities to export goods manufactured or produced in India. The move is aimed at boosting outbound shipments and providing greater certainty to foreign investors. In an inventory-based e-commerce model, the online platform directly owns, stores, and manages the stock of products it sells to buyers.

The policy change comes as the government seeks to raise manufacturing’s share in gross domestic product (GDP) to 25% by 2035 and increase merchandise exports to $1 trillion by 2030.